The New Normal









Summary for clients:
•
401(k) Loans:The loan limit is increased from $50,000 to $100,000.
•
RMDs suspended: Required Minimum Distributions from IRAs and 401(k) plans (at age 72) are suspended.
•
Charity: There is a new provision that provides an above-the-line deduction for charitable contributions, plus, the limits on charitable contributions are changed.
•
Extended deadline for 2019 IRA, HAS, Archer Medical Savings Accounts & Coverdell Education Savings Account contributions (July 15th).
•
The 10% early distribution penalty is waived.

Summary for small businesses:
$377 billion —allocated to support small businesses though loans, forgivable grants and loan deferrals.
Two key provisions:
•
Economic Injury Disaster Loan Program (EIDL): Includes a $10,000 grant that businesses can apply for and which they do not need to pay back. The rest of the EIDL loan, which caps out at $2 million, is not forgivable.
•
Paycheck Protection Program (PPP): Enables organizations to obtain up to $10 million in loans that are 100 percent forgivable if they do not lay off any employees or if they rehire employees they’ve already laid off.
Links:
U.S. Small Business Administration: Paycheck Protection Program U.S. Small Business Administratio Disaster Assistance in Response to the Coronavirus(COVID-19)




































Compliance:
- FINRA Notices:
https://www.finra.org/rules-guidance/key-topics/covid-19 - SEC Guidance:
https://www.sec.gov/sec-coronavirus-covid-19-response
Practice Management: - Stick with the plan; Update the plan as necessary.
- Contact every client. Clients are home and want to talk.
- Develop a Virtual Team of business buddies; Lawyers, CPA’s Mortgage Bankers etc.